d. Confusion

Kinds:

• Commixtion mixture of solid things
• Confusion mixture of liquid things

CONFUSION OR MERGER OF RIGHTS

The character of debtor and creditor is merged in same person with respect to same obligation.

There is confusion when there is a meeting in one person of the qualities of a creditor and debtor of the same obligation.

Requisites of Merger of Rights:

• It must take place between Principal debtor and principal creditor only.
• Merger must be Clear and definite.
• Only One obligation is involved.

Confusion does not extinguish a joint obligation, except as regards the share corresponding to the creditor or debtor in whom the 2 characters concur. (CIVIL CODE, art. 1277)

Effect of confusion or merger of rights

The creditor and debtor become the same person involving the same obligation. Hence, the obligation is extinguished. (NCC, Art. 1275)

There can be partial confusion

It will be definite and complete up to the extent of the concurrent amount or value, but the remaining obligation subsists

Effect of confusion or merger in relation to the guarantors

• Merger which takes place in the person of the principal debtor or principal creditor benefits the guarantors. The contract of guaranty is extinguished;
• Confusion which takes place in the person of any of the guarantors does not extinguish the obligation. (NCC, Art. 1276)

Effect of confusion or merger in one debtor or creditor in a joint obligation

GR: Joint obligation is not extinguished since confusion is not definite and complete with regard to the entire obligation. A part of the obligation still remains outstanding

XPN: Obligation is extinguished with respect only to the share corresponding to the debtor or creditor concerned. In effect, there is only partial extinguishment of the entire obligation. (NCC, Art. 1277)

Revocation of confusion or merger of rights

If the act which created the confusion is revoked for some causes such as rescission of contracts or nullity of the will or contract, the confusion or merger is also revoked. The subject obligation is revived in the same condition as it was before the confusion.

NOTE: During such interregnum, the running of the period of prescription of the obligation is suspended.